The U.S. dollar will appreciate in value if
A) Americans choose to buy more foreign goods.
B) the demand curve for U.S. dollars shifts rightward.
C) the supply curve of U.S. dollars shifts rightward.
D) the demand curve for U.S. dollars shifts leftward.

Question

Quizplus · Accepted Answer

When the demand curve for U.S. dollars shifts rightward, it means that there is an increase in demand for U.S. dollars. This would lead to an appreciation in the value of the U.S. dollar. Option A is incorrect because if Americans buy more foreign goods, it would increase the demand for foreign currencies, leading to a depreciation in the value of the dollar. Option C is incorrect because if the supply curve of U.S. dollars shifts rightward, there would be an increase in the quantity of U.S. dollars supplied, which could lead to a depreciation in the value of the dollar. Finally, option D is incorrect because if the demand curve for U.S. dollars shifts leftward, it means that there is a decrease in demand for U.S. dollars, leading to a depreciation in the value of the U.S. dollar.

The U.S. Dollar Will Appreciate in Value If